Transporting chemicals by bulk tank truck requires coordinated logistics. It’s not always about the line haul rate. Here’s a case study of how DSN Chemical Transportation solved a clients ongoing problem with raw material delivery.
Background: A Bulk Chemical Transport Problem
The client was frequently experiencing late shipments of resin for their paint manufacturing process. This resulted in having to shut down, missing order deadlines, and all around had a huge cost implication. They kept trying different carriers to see if they were any better at being on time. It didn’t matter who they tried, same problem, late shipments, shut downs and big expense. Until one day, the purchasing department called DSN Chemical Transportation to see if we could deliver on time. DSN Chemical Transportation took on the Bulk Chemical Transport Problem.
The Analysis
DSN Chemical Transportation suspected something more was going on here beyond just late deliveries. As a logistics expert, DSN knew that the details were important and began an investigation. Here is what we found:
• On pick up a steam capable tanker had to be delivered 24 hours prior to pick up in order for it to be steamed up to temperature to accept the loading of the resin product.
• Transit time between the two points was 4 days.
• Before delivery, the tanker had to be steamed for at least 24 hours to bring the product back up to temperature prior to delivery.
• At the delivery location, the tank that accepted the delivery fit exactly one tanker. If the tanker got there early, it would either have to wait and be turned away. If it was for an extended period of time, the product may need to be re-steamed to bring it back up to temperature for delivery. If the tanker got their late, then the client’s tank was empty and the production process had to stop. Timing was critical.
The Solution
The solution to this problem was not a “better carrier” as the customer suspected, but better coordination between manufacturing and purchasing. The entire logistics process for this order took: 1 day to steam + 4 days transit + 1 day to steam = 6 days. So DSN set up lines of communication with both production and the supplier. DSN ensured a bulk tank trailer was dropped 6 days before the product was needed.
The results
The client dramatically increased their on-time delivery and dramatically reduced down time. Demurrage charges were also avoided and they were able to complete their production orders on time.
Bring Us your Difficult Logistics Problems- Bulk Chemical Transport Experts
Here at DSN we believe it’s fun to do the impossible. This was just another example of how we were able to bring our expertise and apply it to a difficult logistics problem. If you have a difficult logistics problem, we’re up to the challenge. Contact us today for a free consultation.